Refinancing Home Mortgage
In: Mortgage Lenders
27 May 2010I am losing almost $1000/month after my renters pay if you count in the 1st & 2nd loan. With the current housing market, I could maybe get enough money to pay the 1st if I sold it. If the 2nd mortgage isn’t covered if I end up foreclosing, what will happen? Am I still responsible for the money? What are the consequences with my credit if I foreclose? I also have my 1st house that I also have NO equity at this point. I also own 1 vehicle. Will the 2nd mortgage company on the foreclosed home come after my 1st home and vehicle? Do I need to file bankruptcy?
This is about mortgage information questions.
2 Responses to I have a 2nd home that I have a 1st and 2nd loan on through different lenders. Consequences of foreclosure?
Big Deal Maker
May 27th, 2010 at 1:19 am
You may elect to file a BK. chapter 13 or perhaps a chapter 7. If you get forclosed on then your credit will be ruined anyway. I would advise to see a real estate attorney.
Beverly S
May 27th, 2010 at 1:55 am
First off you know you can’t sell unless you pay both off. You would not be able to give new buyer clear title if the 2nd isn’t paid- Foreclosure will hurt your credit badly- However, I would suggest that over bankruptcy in your case since you own 2 homes. No the 2nd mortgage cannot come after your other home or car. Their security is the home only. You will want to try to keep all your other credit spotless after the foreclosure & eventually you will rebuild.
Good luck!